Attracting, hiring, training and retaining top-notch talent is key to success in business. No one would argue this age-old truism. But today’s workforce is markedly different than it was 10, 5, or even 3 years ago, making effective execution on all of these fronts more challenging than ever.
Trends impacting today’s human capital management (HCM) strategy and operations include an increasingly global workforce, multigenerational workers (from Baby Boomers to Millennials), ubiquitous mobile and social connectivity, a mix of full-time, part-time, flextime and contingent workers, rising healthcare costs, an increasingly complex, dynamic and geo-varied legal environment, and a greater demand for work/life balance – to name just a few.
CEOs certainly get the importance of a winning HCM strategy, but according to PwC’s recently published 17th Annual CEO Survey, there is a distinct crisis of confidence among CEOs in the ability of their organization to meet present-day talent challenges.
According to the PwC survey, 63% of CEOs are concerned about the availability of key skills; 93% say they recognize the need to change their strategies; and only 34% of CEOs feel that HR is well prepared for the challenges ahead.
Tasked with aligning HR practices and business requirements, HR pros share the same concerns, more or less, as business leaders when it comes to attracting and retaining the best possible talent.
According to the SHRM Workplace Forecast, more than one-half of HR professionals think that retaining and rewarding the best employees (59%) and developing the next generation of corporate leaders (52%) will be the greatest challenges. About one-third predict the challenges will be creating a corporate culture that attracts the best employees to the organization (36%), remaining competitive in the talent marketplace (34%) and finding employees with the increasingly specialized skills the organization needs (33%).
The inability of disparate, legacy point solutions to meet today’s challenges is driving the demand for holistic, integrated, cloud-based HCM solutions.
According to Nucleus Research, the HCM market continues to evolve from one dominated by point solutions for core HR, talent management, recruiting, and learning to one where vendors compete based on a holistic approach to the employee lifecycle.
Nucleus also reports “Users are increasingly looking for a single vendor solution that cuts across functional areas and eliminates the manual handoffs between recruiting, performance, time management, compensation, and more with a single employee system of record at the core.”
IDC’s revenue forecast for the worldwide HCM market is $11.0 billion in 2016, growing at a compound annual growth rate (CAGR) of 8.1% and outpacing most other application markets. A new report from Research and Markets forecasts the global, cloud-based talent management software market to grow at a CAGR of 17.59 percent over the period 2013-2018.
SuccessFactors, which SAP acquired in 2012, provides a leading cloud-based Human Capital Management (HCM) Suite, and has been positioned for the second year in a row in the Leaders quadrant of Gartner, Inc.’s “Magic Quadrant for Talent Management Suites.”
This year SAP acquired Fieldglass, extending its cloud-based HR offerings across the permanent & contingent workforces.
In an interview with Diginomica, Mike Eddling, SAP’s new global head of cloud and on-premise HR solutions, notes that approximately 18,000 customers worldwide use cloud solutions from SuccessFactors and the SAP ERP Human Capital Management solution.
Eddling points out that that while 14,000 of these customers currently use SAP’s on-premise HR solutions, the cloud-adoption trend among HR organizations is well underway.
And SAP partners with the requisite experience and expertise are leading the way.
For our part, NTT DATA has invested heavily in pre-configured templates with built-in best practices, project accelerators, data migration tools, bundled offerings and HCM specialists that allow our clients to significantly decrease HCM implementation timelines and costs.
Understanding that customers need to realize maximum value from existing investments, we specialize in guiding our clients through their complete HCM journey – from on-premise to hybrid to pure cloud delivery.
Here are the top ten reasons to implement SuccessFactors now:
- 1Eliminate complexity – Complete solution/no 3rd-party dependency/integration issues
- 2Reduce costs – Lower admin overhead, capex vs. opex
- 3Complete visibility – Real-time access across all HCM functionality
- 4Total compliance – GRC statutes, country-specific regulations & mandates
- 5Security – Safe-harbor certification of HR data
- 6No upgrades/maintenance
- 7Ongoing, automated innovation
- 8Easy to implement, integrate and use
- 9Predictable cost – bundled offering, fixed-scope implementations
- 10Low total cost of ownership
To learn more about why now is the time to implement SuccessFactors cloud-based HCM solutions, visit with NTT DATA HCM experts at SuccessConnect 2014 – September 9-11, 2014 in Las Vegas.
Contact NTT DATA to schedule a meeting at SuccessConnect!
Post Date: 7/10/2014